Dayton, Fairfield Commons malls owner to be bought out

The long-term impact of the merger on the Miami Valley’s two Glimcher-owned malls wasn’t immediately clear. But in the short term, the purchase may add a bit of stability: Glimcher announced earlier this year that both malls were among 13 retail properties that the company was putting up for sale, with the idea of selling three or four of the properties to raise cash.

A spokeswoman for Washington Prime Group said this afternoon that as a result of Washington Prime’s purchase agreement with Glimcher, the Glimcher properties that had been for sale will be taken off the market. As part of the deal, Glimcher will sell two shopping centers — Jersey Gardens in Elizabeth, New Jersey, and University Park Village in Fort Worth, Texas — to Simon Property Group Inc. for $1.1 billion. Currently, Glimcher owns a majority interest in and manages 28 malls across the country that total 19.5 million square feet of leasable space.

Michael P. Glimcher, current CEO of Glimcher, will be CEO of the new company. He will serve as vice-chairman of its board of directors, while Mark Ordan, CEO of Washington Prime Group, will serve as executive chairman.

The agreement calls for WPG to acquire Glimcher in a stock and cash transaction valued at $14.20 per Glimcher common share. The total transaction value, including the assumption of debt, is about $4.3 billion. The new company will be comprised of approximately 68 million square feet of gross leasable area and will have a combined portfolio of 119 properties.

In June, a spokeswoman for Glimcher praised both Dayton-area malls.

“Both Dayton Mall and The Mall at Fairfield Commons are performing very well and continue to attract new, national brands to market,” the Glimcher spokeswoman said. “Throughout this process, we are continuing to invest in these centers. We would be happy to continue to own and manage both of them.”

The Dayton Mall has added several new tenants in recent years, including two that left free-standing stores nearby to join the mall’s roster. Dick’s Sporting Goods moved into the Dayton Mall in 2012 after the mall built a 19,000-square-foot addition to accommodate the 50,000-square-foot mall anchor store. In 2013, an hh gregg electronics store followed suit.